Foreign ETFs Managing $1.3B in Vietnam Stocks See Heavy Outflows; Fubon ETF Hit Hardest

Overview

Three major foreign ETFs—VNM ETF, FTSE Vietnam ETF, and Fubon FTSE Vietnam ETF—managing a combined $1.3 billion in Vietnamese equities have experienced significant capital outflows since the start of 2026. Fubon ETF, despite posting the best performance among the three, saw the largest withdrawal of $111 million. The outflows highlight persistent foreign selling pressure on the Ho Chi Minh Stock Exchange (HOSE), where foreign investors have net sold over VND 82 trillion year-to-date.

Key Facts

• Three foreign ETFs (VNM, FTSE, Fubon) manage a combined $1.3 billion in Vietnamese stocks.
• Fubon ETF saw net outflows of $111 million (3.58 billion TWD) since early 2026, the largest among the three.
• Fubon ETF has experienced net redemptions for 10 consecutive quarters since mid-2023.
• VNM ETF recorded net outflows of $26 million year-to-date, marking its third consecutive year of withdrawals.
• FTSE ETF bucked the trend with net inflows of $2.6 million in 2026, after two years of outflows totaling $106 million.
• Fubon ETF posted a 4.8% return year-to-date, outperforming FTSE ETF (0.08%) and VNM ETF (-1.41%).
• VIC is the largest holding in all three ETFs, followed by VHM, HPG, MSN, and SSI.

What Happened

According to data from Dataindex.vn, the three largest foreign ETFs investing in Vietnam—VNM ETF (managed by VanEck), FTSE Vietnam ETF (managed by Xtrackers), and Fubon FTSE Vietnam ETF (managed by Fubon)—have faced divergent capital flows since early 2026. Fubon ETF, which once managed nearly $1 billion at its peak in 2021, has seen its assets shrink to approximately $370 million due to persistent redemptions. Despite this, the fund has delivered a 4.8% return year-to-date, the best among the trio.

VNM ETF, the largest with $560 million in assets, has continued to bleed capital, losing $26 million in 2026. FTSE ETF, with $380 million, has attracted $2.6 million in net inflows, reversing a two-year outflow trend. The outflows from Fubon and VNM ETFs reflect a broader foreign selling wave on HOSE, where foreign investors have net sold over VND 82 trillion since the start of the year.

Market Context

VIC closed at VND 223,000 on July 10, 2026, up 0.90% on volume of 3.99 million shares, while VHM fell 1.14% to VND 147,000. HPG dropped 1.08% to VND 22,950, and MSN edged down 0.15% to VND 68,800. The outflows from foreign ETFs have added to selling pressure on large-cap stocks, particularly those heavily weighted in the funds. The VN-Index has been under pressure from persistent foreign net selling, which has exceeded VND 82 trillion year-to-date on HOSE.

Strategic Significance

The continued outflows from foreign ETFs, especially Fubon, signal a structural shift in foreign investor sentiment toward Vietnam, driven by global risk aversion and domestic headwinds. However, the fact that Fubon ETF has outperformed despite heavy redemptions suggests that its portfolio construction—concentrated in large-cap stocks like VIC, VHM, and HPG—has been resilient. The concentration of holdings across the three ETFs means that any further redemptions could amplify selling pressure on these common names. Conversely, if foreign inflows resume, these stocks could see significant buying support.

What to Watch

• Weekly net flow data for VNM, FTSE, and Fubon ETFs to gauge trend changes.
• Q2 2026 earnings reports for VIC, VHM, HPG, and MSN, which could influence ETF rebalancing.
• Any policy announcements from the State Bank of Vietnam (SBV) regarding foreign ownership limits or capital controls.
• Monthly foreign trading data on HOSE to see if the broader selling wave abates.
• Potential index rebalancing by FTSE and MSCI, which could alter ETF weightings.